BTG Nikko Formed to Provide Services in China

  JAL Hotels Company, Ltd., operating company
of Nikko Hotels International, announced today in Tokyo that it will form a
50:50 joint venture corporation with Beijing Capital Tourism Co., Ltd., a
Chinese company, to provide hotel management services. The joint corporation,
BTG Nikko International Hotel Management Co., Ltd. will be based in Beijing,
China.
JAL Hotels and Beijing Capital Tourism are each leading companies in the
tourism and hospitality industry in their headquarter countries, and have a
20-year business relationship with each other managing Jinglun Hotel, a Nikko
Hotels International property located in the center of Beijing.
  “Each company brings expertise and professionalism to this partnership,”
said Mr. Shosuke Machida, president of JAL Hotels Company, Ltd.  “JAL Hotels
operates hotels around the world and has established the strong Nikko Hotels
International brand name as well as offers international hotel management and
sales capabilities. Beijing Capital Tourism has built outstanding know-how in
managing travel agencies and hotels and has a superb network throughout China.
Both companies believe that establishing a joint corporation will create
synergy and multiply our merits.”
  Mr. Yi Liu, president of Beijing Capital Tourism Co., Ltd., added, “We are
very pleased to have the opportunity to work together with JAL Hotels Company
to promote the Nikko brand.  Our partnership will bring us and JAL Hotels
Company to our common goal of contributing to the future development of the
Chinese hotel industry and becoming one of the top hotel management companies
in China.”
  The two companies announced that their new joint corporation, BTG Nikko
International Hotel Management Co., Ltd. will first concentrate on 11 cities
in China where Japan Airlines, JAL Hotels Company’s parent company, has air
routes, as its major market. The company will provide hotel management to
Nikko Hotels as well as other local hotels with ranking above four stars. By
mid-February, the company will set up a pre-opening office in preparation for
an official office opening on April 1, 2004.
  BTG Nikko International Hotel Management Co., Ltd. will manage three
hotels in Beijing: Jinglun Hotel, Beijing New Century Hotel and Minzu Hotel
Beijing. The company is also currently negotiating contracts with several
hotels in other cities. Jinglun Hotel is expected to go through major
renovations to upgrade the property to the five-star class, targeting the 2008
Beijing Olympics. The Beijing city government has declared the area as the
Central Business District, and Jinglun Hotel will be a world-class flagship
hotel for the company. Jinglun Hotel and Beijing New Century Hotel will be
managed under the Nikko Hotels International brand name.
  Nikko Hotels International is an international luxury hotel group operated
by JAL Hotels Company Ltd., a subsidiary of Japan Airlines, headquartered in
Tokyo, Japan.  In addition to Nikko Hotels International, JAL Hotels also
operates Hotel JAL City, a chain of 10 mid-priced hotels for business
travelers in Japan, as well as independent hotel properties.  JAL Hotels
Company Ltd. has 54 hotels worldwide, in Europe, Americas and throughout Japan
and the Asia/Pacific region.  Through a unique global alliance with the Le
Meridien hotel brand formed in 2000, Nikko Hotels’ guests now have access to
Le Meridien hotels worldwide, thus extending Nikko Hotels’ marketing network
to more than 170 hotels in over 63 countries and territories.  The Nikko
Hotels International partnership with Le Meridien covers all Le Meridien
properties worldwide.
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